Over 5 Million Brits Expect to Buy a Property within the next 12 Months

A new research report from Santander Mortgages has revealed that 10% of Britons (equivalent to 5.1 million people) believe they are likely to purchase a new home within the next 12 months, up from 8% (3.7 million) in January 2012, displaying the positivity surrounding recent government initiatives, which have been implemented to incur a surge of activity in the UK housing market.

Over 5 Million Brits Expect to Buy a Property within the next 12 Months

In their report Santander declare that the Help to Buy Scheme is a major contributing factor to this confidence hike, the second phase of which has recently been brought forward, with 33% of those planning to purchase a home in the next year declaring that they expect to use the scheme’s assistance.

Although the scheme can be used by both first-time buyers and homeowners, the report details that it has impacted most positively on those falling into the first-time buyer bracket, who represent a third (33%) of those likely to buy a home in the next year, while 32% of homeowners plan to buy a new home and 13% plan to buy a second home, while 11% plan to buy a property as a buy-to-let investment vehicle.

The report also details that young professionals are set to be the most active in the UK housing market during the next 12 months, with 18% of 18-34 year olds saying they are likely to buy a house, compared to 9% of 35-54 year olds and only 5% of those aged over 55.

Buyers’ confidence of attaining a property has also been used as a measurement to assess the varying levels of property purchases, regions can expect within the next 12 months. Buyers in London are the most confident of acquiring a new property, with 20% expecting to purchase a property within the next 12 months, compared to 13% last year. Whilst optimism is also high in the West Midlands, with 16% expecting to purchase a new property, up from 7% last year, while buyers from the North West are the third most confident, with 12% expecting to purchase a property, a 5% hike from last year’s total of just 7%.

Homeowners are also seeing the positive effects of the Help to Buy scheme, with 57% of them anticipating an increase in the value of their property, a stark contrast to last year’s results, where conversely, just 29% of homeowners anticipated a price rise.

Those in London are the most confident that the value of their home will increase, with 79% believing it will do so compared to only 2% who believe it will fall. Indeed optimism is high throughout the South, with 64% of home owners in the South East and South West expecting the value of their home to appreciate.

Article adapted from The Economic Voice.

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